Gurgaon: Builder Ordered To Refund Rs 2.26 Crore Under RERA Rules After 10-Year Delay In Flat Delivery

A Gurgaon homebuyer has been awarded Rs 2.26 crore by Haryana RERA after waiting over ten years for a flat. The buyer initially booked a flat in 2013 for Rs 1.16 crore, paying Rs 12 lakh as a booking amount. In 2014, the buyer paid Rs 95 lakh, totaling Rs 1.07 crore. However, when the buyer visited the site, no construction had started. Despite the huge payment, the builder had made no progress, prompting the buyer to seek a refund.

Repeated Project Shifts And Delays

The buyer first booked the flat in 2013, paying Rs 12 lakh. In 2014, a sales agreement was executed, and the buyer paid Rs 95 lakh, totaling Rs 1.07 crore. However, when the buyer visited the site, no construction had started. Distressed, the buyer requested a refund and tried to cancel the booking. Instead of agreeing to the refund, the builder convinced the buyer to switch to another flat in a different project. This process repeated three times, each time the buyer was promised another flat, but none of the flats were completed on time.

The buyer eventually grew frustrated with the ongoing delays and lack of progress. After ten years, the buyer filed a complaint with Haryana RERA, seeking a refund of Rs 1.07 crore with interest.

Haryana RERA investigated the matter thoroughly and found the builder at fault. The builder claimed the delays were due to “force majeure” circumstances, including the pandemic. However, RERA rejected this argument, stating that the agreements were made before the pandemic and thus could not be blamed for the delays.

RERA determined that the builder had repeatedly failed to meet deadlines and had not delivered any unit to the buyer, despite multiple project switches. As a result, Haryana RERA ordered the builder to refund the total amount paid by the buyer, including 11.1% interest. This brought the total refund amount to Rs 2.26 crore, covering both the principal and interest from the date of each payment.

The ruling emphasized the importance of following timelines and honoring contractual obligations in the real estate sector. Builders who fail to deliver on their commitments face severe legal consequences.

Key Legal Takeaways From RERA Judgment

Legal experts highlighted several key points from the judgment. The builder’s claim of “force majeure” due to the pandemic was dismissed because the agreements were made before the outbreak. This ruling shows that builders cannot use external factors to justify delays if they occurred after the contract was signed.

Additionally, the builder’s practice of switching units for the buyer due to non-completion demonstrated a breach of contract. Buyers have the right to timely possession, and failure to deliver leads to compensation.

The ruling also clarified that interest should be calculated from the date of each payment, not from the final deadline. This ensures that buyers are fairly compensated for the delays.

The decision underscores the need for transparency and adherence to timelines in the real estate sector. Builders must fulfill their commitments to maintain consumer trust and avoid legal trouble.

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